Forex Technical Update
AUD/USD 1H Chart 10:50AM EDT 6/28/2012
The AUD/USD topped off a sharply rally attempt during the 6/28/2012 European session when the EU summit got underway. The EU summit is disappointing so far, and risk aversion is pushing the USD up while pressuring commodity currencies like AUD, NZD and CAD.
As the 6/28 US session got underway, we have participation in this risk-off trading, pushing the AUD/USD below a rising wedge/channel pattern. In the 4H chart, you can say that this was a pennant. A breakout suggests bearish continuation.
Also note in the 4H chart, that the breakout confirms a previous breakout of a larger wedge/channel, that would look like a pennant in the daily chart. For now, let's assess this bearish continuation in the short-term, though you know that the bearish continuation signal is also for higher time-frame.
While staying on the 4H chart, we see that below parity (1.00), we open up 1) 0.9965 low on the week, 2) 0.9920, with some support pivots and the 200 4H SMA here. Below that, we open up the 0.9820 support area. Then below 0.98, we open up June lows in the 0.96-0.9630 area.
AUD/USD 4H Chart 10:55AM EDT 6/28/2012
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.